Question : GST on Licence Fee

(a) the category/rules under which 18 per cent Goods and Services Tax (GST) is being recovered by the Government on the licence fees of the catering licencees at the railway stations;
(b) whether the All India Railway Catering Licencees Welfare Association has given demand letter/ suggestions to the Government from time to time to rationalise the GST rates;
(c) if so, whether the requests have also been received by the Government from the Public Representatives regarding the demands of licencees vendors; and
(d) if so, the details of action taken by the Government on the demand letters received from the association?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ANURAG SINGH THAKUR)

(a): GST is levied on the licence fees recovered by the Government for the catering licences under Notification No. 11/2017- Central Tax (Rate) dated 28th June, 2017 issued under power conferred by the Section 9 of the CGST Act, 2017.

(b, c &d): GST rates are prescribed on the recommendation of the GST Council. The request of railways licencees for exemption of GST on the license fees of the catering licences at the railway stations was examined by the GST Council in 28th meeting held on 21.07.2018. The GST Council did not recommend any change in GST rate.
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